Syria is set to issue a new currency by removing two zeros next December

Exclusive documents obtained by "Reuters" reveal that Syria intends to issue new banknotes next December that will include the removal of two zeros from its national currency, in a move aimed at restoring confidence in the Syrian pound, which has been weakened by more than a decade of war.

Seven informed sources and documents obtained by the agency indicated that the goal of this move is to enhance the value of the pound after its purchasing power collapsed to unprecedented levels, following a 14-year conflict.

The Syrian pound has lost more than 99% of its value since the outbreak of war in 2011, with the exchange rate now at around 10,000 pounds to the dollar compared to 50 pounds before the war.

According to a document reviewed by "Reuters", the Central Bank of Syria informed private banks in mid-August that it intends to issue a new currency with "zero removal", in an attempt to facilitate transactions and improve monetary stability.

Five sources from commercial banks and a source from the central bank and a Syrian economic official confirmed that the central bank later informed them that specifically two zeros would be removed. All sources requested anonymity "because it concerns a decision that has not yet been announced".

Regarding responsibility, "Mokhles Al-Nazir, the deputy governor of the central bank, chaired meetings on reforming the pound's situation," according to the sources. For her part, Amal Al-Masri, the director of the government commission at the central bank, declined to comment, stating that "the matter is highly confidential". Al-Nazir and the Syrian Ministry of Finance did not respond to requests for comment.

Two bankers and another informed Syrian source revealed that Syria has agreed with the Russian state company "Goznak" to print the new banknotes, during a visit by a high-level Syrian delegation to Moscow in late July. "Goznak", which previously printed the Syrian currency during Assad's era, did not respond to requests for comment.

The decision carries significant symbolic significance as it represents a break from the legacy of the Assad family's rule, as "Bashar Al-Assad's face appears on the purple 2000-pound banknote, while the green 1000-pound note bears the image of his father, Hafez Al-Assad".

Officials plan to launch a media campaign before the official release of the new banknotes on December 8, which coincides with the first anniversary of the overthrow of Assad.

In this context, the central bank directed banks to prepare for the issuance of the new notes by mid-October and requested them to prepare detailed reports on their preparations, according to a central circular reviewed by "Reuters".

There will be a "12-month transitional period that will allow the circulation of both old and new banknotes until December 8, 2026," according to officials from five commercial banks.

However, prominent Syrian economist Karam Shaar, an advisor to the United Nations, warned that "the currency revaluation may confuse consumers, especially the elderly, along with the lack of a clear regulatory framework or a plan for nationwide implementation".